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Most countries in the world would have put non-tariff barriers on some service businesses and

do not permit a foreign company from entering the country to provide those services to their citizens.
The list below includes service businesses that are usually stopped by most countries. Which
business should not be on this list?

a. Hospitals
b. all of the other answers are correct
c. mail service
d. Insurance
e. public transportation

1 Answer

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Final answer:

All the services mentioned—hospitals, mail service, insurance, and public transportation—are often subject to non-tariff barriers. Examples a and b are government-enforced barriers to entry, while a well-known trademark is a situation that does not involve a barrier to entry.

Step-by-step explanation:

Non-Tariff Barriers and Service Businesses

The service businesses in the list that are often subject to non-tariff barriers by most countries include hospitals, mail service, insurance, and public transportation. The option that should not be on the list is none of the above, as all of these services are typically regulated by governments to ensure domestic control and to meet specific national standards or objectives.

Classifying Barriers to Entry

When it comes to barriers to entry, they can be broadly classified into government-enforced and those that are not government-enforced. Here's how the given examples fall into these categories:

  • Government-enforced barrier: Limiting the number of licenses for taxicabs (a)
  • Government-enforced barrier: Requiring taxicab drivers to pass a safety test and have insurance (b)
  • Situation that does not involve a barrier to entry: A well-known trademark (c)

Other examples of non-tariff barriers include rules-of-origin regulations, with actions such as recalibrating the production process to change the last substantial change in the product's country of origin. This is often used to meet import standards or to claim a product is made in a more favorable trade country.

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